Discount loan is a type of cash loan made against a commercial note that has not yet due. The note's debtor must reside in the same municipality as the bank branch to which it is presented. The amount paid in cash is the face value of the note minus the interest accruing on the note until its maturity, commissions and the legal charges due on the note such as KKDF and BSMV. In short, in a discount loan, the discounted note is endorsed over to the bank, which assumes responsibility for collecting it.